The PenP protocol was used, resulting in a loss of $27M.

The PNP protocol—an independent decentralized financial protocol built on top of Pendle—was exposed to an exploit on September 3, 2024, and as of this writing, $27 million in client funds have been lost.

Onchain sleuths traced the offending transaction to an address ending in “bb7”, one of several addresses used by the hacker. As a precaution, Penny has suspended all deposits and withdrawals at this time.

A Pendle spokesperson also said that all customer funds will remain safe after the hack and that all contracts have been temporarily suspended until the issue is resolved.

Crypto hacking is on the rise in 2024.

Unfortunately, the Penny exploit is not a unique phenomenon and has become more common as crypto hacks and exploits are on the rise in 2024.

According to a recent report from Imunfi, more than $1.2 billion was stolen this year through hacking and exploitation. The missing funds were distributed on 154 separate occasions.

Related: FBI Warns of North Korea's ‘Social Engineering' Plans to Steal Crypto

Mitchell Amador, founder and CEO of Immunefi, told Cointelegraph that while most of these exploits occurred in the decentralized financial space, exploits of centralized financial infrastructure caused the majority of financial losses due to the large amount of capital there.

According to a report from security firm PeckShield, financial losses from hacking exceeded $313 million in August 2024. Two of the biggest attacks of the month saw nearly $238 million in Bitcoin (BTC) and $55 million in Dai (DAI). .

Another Scam Sniffer report found that financial losses from phishing attacks—a type of malicious exploit used by hackers to extract sensitive information from victims—increased by 215 percent in August 2024.

While phishing attacks in August decreased compared to July, the amount of money stolen increased, with $55 million stolen per attack, according to the report.

Magazine: $55M DeFi Saver phish, copy2pwn hijacks your clipboard: Crypto Sec